Insightful article here looking at the lessons for Directors and Executives following the release of the interim report into the Banking Royal Commission and the recent problems at the ABC.
Key question for Directors and Executives:
‘A good question is: how would it look if what’s now private became public?’
”When you’re on a board, it’s easy to see how things look from the viewpoint of the insiders – the people in the room, and on the floors below. What’s harder to see, and give adequate weight to, is the viewpoint of outsiders.
But that’s the board members’ duty, statutory and moral: to represent the interests of outsiders, including the shareholders, but also other “stakeholders”. To view things more objectively than management does. To avoid falling into groupthink. To rock the boat if it needs rocking.
Don’t wait until private knowledge becomes public.